This Value-Focused Vanguard Fund Is Your Portfolio’s No-Brainer Foundation

Vanguard's Value Fund quietly dominates while flashier picks grab headlines—proving sometimes boring is beautiful.

Why Value Still Wins

Forget chasing trends. This fund targets undervalued giants trading below intrinsic worth—the ultimate 'buy low' strategy in a hype-driven market.

The Steady Engine

It bypasses speculative noise, focusing on cash-flow monsters with durable advantages. No meme-stock drama, just relentless compounding.

Portfolio Anchor

Cuts through volatility by weighting toward financially robust companies. When growth stocks stumble, this fund holds the line.

Long-Game Advantage

Outlasts flash-in-the-pan performers by sticking to fundamentals—because in finance, sometimes the best move is ignoring the 'next big thing'.

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The fund gives you exposure to many big-name value stocks

As of the end of July, the fund had 323 stocks in its portfolio. The two largest holdings,and, each account for around 3% of the total fund. It doesn't have significant exposure to any single stock, which makes it an ideal option for risk-averse investors. Other blue chip stocks in the ETF include big names such asand.

These are among the safest stocks you can invest in, and you can gain access to many of them through this ETF. What investors may also like is its focus on fairly stable sectors, including financials, healthcare, and industrials, which together account for more than half of its total holdings. By contrast, tech stocks, which can be volatile and prone to high valuations, account for just over 7% of the fund's holdings.

Overall, the ETF averages a price-to-earnings multiple of just under 20, which is below theaverage of 25.

Low fees and above-average yield sweeten the deal

In addition to excellent value, diversification, and low risk, the ETF also has an extremely light expense ratio of 0.04%, typical for a Vanguard fund. Low fees are crucial when you're investing for the long haul, as they can add up over time and chip away at your overall returns.

The fund also yields 2.2%, which is notably better than the S&P 500 average of 1.2%. The dividend income enables you to generate some valuable cash FLOW without having to sell any of your investments, or you can simply use it to reinvest in the ETF. Over the past decade, the Vanguard Value Index Fund has generated total returns (including dividends) of around 210%.

That's lower than the 300% total returns the S&P 500 has generated over that time. Lower potential returns are one of the drawbacks of focusing on value stocks, but in return you get much more stability and safety in the long run.

This Vanguard ETF is a great option to just buy and hold

Whether you're worried about the stock market and want some safety or you just want an investment you won't have to worry about for the long haul, the Vanguard Value Index Fund can be ideal for your portfolio. It can be a solid go-to ETF to put money into regularly, giving you a good mix of growth, value, and dividends.